Rainbow Coral Corp (OTCMKTS:RBCC) On The Slide Again

[[tagnumber 0]][[tagnumber 1]]The stock of Rainbow Coral Corp (OTCMKTS:RBCC) has gained quite a lot of attention recently and has shown us just how volatile the OTC markets can be. Back in the middle of last month we saw the ticker skyrocket and climb from a price of just around $2 per share to more than $6 in a matter of a few sessions.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]As the charts show, however, things quickly turned sour and we saw [[tagnumber 6]]RBCC[[tagnumber 7]] slide down to a low of $1.35 per share almost as quickly as it had climbed to great heights earlier. One of the reasons for this is that the company doesn’t really have much to show in order to support such price levels. Let’s take an example from [[tagnumber 6]]RBCC’s[[tagnumber 7]] report for the quarter ended June 30.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 13]] [[tagnumber 14]]cash: $2,740[[tagnumber 15]] [[tagnumber 14]]current assets: $4,524[[tagnumber 15]] [[tagnumber 14]]current liabilities: $517,798[[tagnumber 15]] [[tagnumber 14]]quarterly revenues: $27,683[[tagnumber 15]] [[tagnumber 14]]quarterly net loss: $136,929[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Certainly not the numbers you would expect to see from a company whose stock commands such prices, but then again, [[tagnumber 6]]RBCC[[tagnumber 7]] did execute a 1 for 100 reverse split which has also helped push the ticker in the right direction.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It was more than obvious, however, that [[tagnumber 6]]RBCC’s[[tagnumber 7]] movement would be volatile, especially when considering the fact that the company likes people to think of it as a biotech while its revenues come from selling aquarium supplies.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Furthermore, as we have previously mentioned there is a massive amount of shares that have seen the light of day at heavily discounted prices. All this means that the 18.80% drop that [[tagnumber 6]]RBCC[[tagnumber 7]] experienced last Friday wasn’t surprising. Yesterday’s 11.33% drop doesn’t amaze us as well.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Today, however, [[tagnumber 6]]RBCC[[tagnumber 7]] is a bit more stable and has barely moved, despite the fact that at its current market cap of $13.5 million it is still overvalued when you look at the numbers contained in the company’s books. Considering all this you should be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]